Retirement job change after 55: second pillar, pension impacts (cross-border guide)

Context

In a nutshell

The New Frontier Agreement, which entered into force on 23 December 2020, provides for a transitional regime for border workers who were already border workers before 17 July 2023. New frontier workers, on the other hand, are not subject to this transitional regime. This regime has been established for 10 years.

Change border job after age 55: protections and impact on second pillar and pension

With the expiry of the transitional regime for frontier workers on 17 July 2033, many Ticino workers could change jobs. As for the protections, there is no significant news. Retirement, on the other hand, will have a significant impact, especially with regard to the second pillar.

Pension impacts

For frontier workers who have never joined the transitional regime, the pension will be calculated on the basis of the unipolar system, without a second installment. For those who have joined, the pension will be calculated according to the two-faced system, with a second installment. The first installment is based on total income, and the calculation of the second installment depends on several factors, including age on January 1 of the first year of retirement, contributions paid, contributions paid, and an age coefficient.

Impacts on the second pillar

The main impact concerns the second pillar. For frontier workers who have joined the transitional regime, the calculation of the second pillar has been dampened for 10 years. For border crossers who joined before 17 July 2023, the

Operational details

Practical analysis

Frontier workers over 55 can change jobs without losing the benefits of the second pillar thanks to the New Frontier Agreement. This means they can keep their rights to the second pillar even if they change jobs.

Article title: "Changing jobs as a border worker after the age of 55: protections and impact on the second pillar and pension"

The benefits of the new border agreement

The New Frontier Agreement introduced new protections for job-changing border workers over 55. For example, if before 1 July 2022 a frontier worker over 55 changes jobs, he/she will be able to maintain his/her rights to the second pillar and to the old-age pension, provided that the job has been taken out by a company that is in good standing with social contributions and that has its residence in Ticino.

The requirements to maintain the benefits of the second pillar

To maintain the benefits of the second pillar, the frontier worker over 55 must comply with the following requirements:

• must be over 55 years old at the time of termination of previous employment
• must have worked at least 24 months at a company that is in compliance with social contributions (mandatory for the first year of work at that company)
• must be resident in Ticino

The requirements to maintain old-age pension benefits

To maintain the benefits of the old-age pension, the border worker over 55 must comply with the following requirements:

• must be over 55 years of age at the time of

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Changing jobs as a frontier worker after the age of 55: protection and impact on the second pillar and retirement

If you want to change frontier work after the age of 55, it is essential to carefully consider your rights and potential consequences. An employment consultant or lawyer can provide clarity on requirements and alternatives. Here are some recommendations:

1. Guardianship: After the age of 55, there are no formal restrictions on changing border workers, but it is essential to check whether the new job meets the requirements for the second pillar. For example, the second pillar does not cover social and health benefits for unconventional services or in Italy.

2. Impact on the second pillar: The frontal pension is not subject to the calculation of the second pillar, but it is possible to consider the Italian old-age pension for the coverage of contributions and social benefits not covered by the second pillar.

3. Regulations and concrete cases: For example, in the municipality of Mendrisio, you can find information on local regulations and concrete cases on how easy or complex it is to change jobs after the age of 55.

4. Operational Checklist: Here is an operational checklist to manage the topic: - Check the requirements for the new job - Check the requirements for the second pillar - Check social and health benefits - Check any penalties - Consult an employment consultant or lawyer

5.

Discover Ticino job offers updated daily: 4,000+ positions from Swiss companies hiring cross-border workers.